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Which statement is true about permanent life insurance?

A. Permanent life insurance policies are paid upfront and last the duration of the policy holder's life.

B. Permanent life insurance is usually the least expensive option for a young policy holder.

C. Permanent life insurance policies insure policy holders for as long as they pay a premium.

D. Permanent life insurance is usually less expensive for older policy holders than young policy holders.

2 Answers

4 votes

Answer:

C. Permanent life insurance policies insure policy holders for as long as they pay a premium

Explanation:

User Kingsley Ijomah
by
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4 votes

Answer:

Explanation:

C. Permanent life insurance policies insure policy holders for as long as they pay a premium, is a true statement.

Permanent life insurance is a type of life insurance policy that provides coverage for the policyholder's entire life, as long as they continue to pay the premium. Unlike term life insurance, which provides coverage for a specified period of time, permanent life insurance is designed to last for the duration of the policyholder's life, as long as they pay the required premiums.

Option A is not correct because permanent life insurance policies require ongoing premium payments, not an upfront payment.

Option B is not correct because permanent life insurance tends to be more expensive than term life insurance, especially for younger policyholders.

Option D is not correct because permanent life insurance tends to be more expensive for older policyholders, due to the higher likelihood of the policyholder passing away, which means the insurance company will have to pay out the death benefit sooner.

User Arok
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